Securing Your Financial Health In A Recession: How Credit and A/R Teams Could Leverage Customer Profitability
White Paper provided by HighRadius Corporation
The COVID-19 outbreak is one of the most severe crises that the world has undergone in recent years, and its potential impact on the global economy is expected to be huge. While there are many unknowns involved in the equation with ever-changing customer behavior and market conditions, for finance leaders, the top-priority is to be better prepared for a potential global recession. Understanding the customer profile is key to an efficient accounts receivable process, and in the wake of the current situation it is all the more critical for credit teams to identify profitable customers and focus on retaining them. As A/R evolves into a “profit-center” for businesses, order-to-cash teams need to keep a close eye on the cost-to-serve a customer, and compare that to the revenue being generated by said customer to help prioritize accounts and operate smoothly in the face of the pandemic and its aftermath.